Protron Settles Trademark Suit with Proton, Agrees to Change Brand
Protron is changing its CE brand to SpectronIQ to settle a trademark infringement suit by Proton. The settlement, made about a month ago, came after Protron was spurned in its offer to buy Proton, Vp Sales Gary Bennett told Consumer Electronics Daily.
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China-based Protron Digital will keep its corporate name, gradually switching to the new brand. It will begin applying SpectronIQ to a portable DVD player with a 7” LCD ($99) to ship next week to retailers including ABC Warehouse, Shopco, H.H. Gregg and Walgreen’s, Bennett said. Next: a SpectronIQ 8” portable DVD player($129), 32W ($899), 37W ($1,299) and 42W ($1,499) LCD TVs and 300-w and 500-w home theater systems, he said. Retail ads featuring the SprectronIQ brand likely will break in Oct., he said. Inventory of Protron LCD TVs and DVD recorders will be sold off this month, he said. The company stopped delivering Protron DVD players for about 90 days as it prepared for the settlement, Bennett said.
“There could be a Protron brand” in retail ads in Sept., but “they'll have SpectronIQ product,” Bennett said: “Proton didn’t want to sell the brand, and the owners of our company decided that rather than take a chance of having our business disrupted it would be best to change our name.” Proton officials weren’t available for comment at our deadline Thurs.
After Proton sued Protron in Jan., alleging trademark infringement, U.S. Dist Judge Gary Klausner, L.A., issued a preliminary injunction in March barring Protron from using its brand on products and distribution materials. Klausner said using the brand created a “likelihood of confusion” among consumers and a “presumption of irreparable harm” to Proton. Protron improperly used the brand and Protron took complaints from consumers who confused Protron TVs for Proton, he said. But the injunction never took effect.
Proton sued after the Protron brand began appearing at retailers, including Sears and ShopNBC.com, during the 2005 holiday selling season. Protron since has scored distribution wins for portable DVD players with a mix of retailers that also includes Long’s Drug Stores and Toys ‘R’ Us, Bennett said. Protron plans to expand its assortment of LCD TVs by adding a 47W model in Nov.-Dec. to be sold through ShopNBC.com before expanding distribution in Jan., Bennett said. Protron is readying a line of 1080p-equipped LCD TVs for introduction in 2007 under another brand, whose name hasn’t been decided, Bennett said. Protron may also drop Spectron and go with an “IQ” brand, Bennett said. Protron is expected to sell about 800,000 portable DVD players this year, Bennett said.
Meanwhile, Proton is seeking to revive its brand in the U.S. custom installation market. In June, it hired CE veteran Kim McCusker as exec. vp, and next week at CEDIA Expo it will introduce Puriti 42W ($2,499) and 47W ($3,999) LCD TVs. The sets feature 1920x1080p resolution, 1,200:1 contrast ratio and 500 nits brightness. Both have Proton’s internally developed Puriti video enhancement technology and an artificial intelligence system that analyzes color frequencies and intensity.